- Midway (ASX:MWY) enters a binding MOU with CHS Broadbent
- Midway will sell a section of its North Shore site in Geelong, Victoria, to CHS Broadbent, which will construct and manage an 80,000 metric tonne grain storage and export terminal
- Per the MOU, CHS Broadbent will initially lease and later acquire freehold title to five hectares (12 acres) of the Midway site at North Shore
- The agreed-upon price for the land sale is $15.5 million, and CHS Broadbent’s grain export activities will contribute to the overall port volumes of Midway
- MWY shares are up 10.1 per cent, trading at 82 cents at 1:48 pm AEDT
Midway (ASX:MWY) has entered a binding memorandum of understanding (MOU) with CHS Broadbent.
The collaboration will involve Midway selling a section of its North Shore site in Geelong, Victoria, to CHS Broadbent, which will construct and manage an 80,000 metric tonne grain storage and export terminal.
Per the MOU’s terms, CHS Broadbent will initially lease and later acquire freehold title to five hectares (12 acres) of the Midway site at North Shore. This area will be used for receiving, storing, and exporting grain, commencing in the second half of 2024.
“This is an exciting step forward for the company and will provide a more competitive pricing opportunity for farmers in the area,” CHS Broadbent Managing Director Steve Broadbent said.
“The addition of an export terminal to our supply chain service will see further value delivered to growers, right back to the farm gate.”
The agreed-upon price for the land sale is $15.5 million, and CHS Broadbent’s grain export activities will contribute to the overall port volumes of Midway.
“The terminal will be designed with an annual export capacity of 1.5 million metric tonnes. In an average year we project we will export around 1.0 million metric tonnes which equates to approximately 13 turns per year,” Mr Broadbent added.
Both Midway and CHS Broadbent will equally finance the costs of upgrading the CQN4 ship-loader to meet grain standards, establishing a new entry point for trucks, and implementing site separation.
The estimated capital expenditure for Midway’s modifications to accommodate the new CHS Broadbent grain export terminal is $4.5 million in the fiscal year 2024-2025.
MWY shares were up 10.1 per cent, trading at 82 cents at 1:48 pm AEDT.